GBP/USD Forecast: Pound Sterling pullback to pave the way for fresh uptrend

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GBP/USD Forecast: Pound Sterling pullback to pave the way for fresh uptrend
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The Pound Sterling (GBP) recorded a fresh 12-month high above 1.3000 against the US Dollar (USD) but the GBP/USD pair snapped its two consecutive weekly gains to settle in the red.

The Pound Sterling reached its highest level in a year versus the US Dollar, 1.3050 tested. GBP/USD appears to be a ‘buy-the-dips’ trade in the action-packed week ahead. Pound Sterling reverses from the overbought zone, implying more upside going forward. The Pound Sterling recorded a fresh 12-month high above 1.3000 against the US Dollar but the GBP/USD pair snapped its two consecutive weekly gains to settle in the red. Pound Sterling briefly recaptured the key 1.

Therefore, speculations surrounding the Fed and BoE interest rate expectations and potential trade concerns will continue to have a pivotal role. The mid-tier US Existing Home Sales is the only relevant data due on Tuesday. However, Wednesday will feature the preliminary S&P Global Manufacturing and Services PMI data from the UK and the US. Meanwhile, the advance second-quarter Gross Domestic Product data from the US will grab the eyeballs on Thursday.

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